Automatic Data Processing, Inc. stock trades under the ticker ADP & has shown recent bullish behavior that traders & investors should take notice of.
ADP stock closed at $223.91/share on 2/9/2023.
Automatic Data Processing, Inc. ADP Stock’s Technical Performance Broken Down
ADP Stock Price: $233.91
10 Day Moving Average: $224.81
50 Day Moving Average: $241.90
200 Day Moving Average: $232.15
RSI: 39.24
MACD: -4.808
Yesterday, ADP stock completed a bullish MACD crossover, despite losing -0.03% on the day’s session.
Recent trading volumes have been above average compared to the year prior, and their RSI is on the oversold side.
However, their recent candlesticks are signaling further near-term decline, which should provide better entry-points for investors.
ADP stock has support at the $222.13 & $218.49/share level, as they try to break out above their $224.24 & $224.81 (10 Day Moving Average) resistance levels.
Automatic Data Processing, Inc. ADP Stock As A Long-Term Investment
Long-term oriented investors will like ADP stock’s 34.07 P/E (ttm), but may find their 30.72 P/B(mrq) to be a bit higher than they’d prefer.
They recently reported 9.1% Quarterly Revenue Growth Y-o-Y, with 17.1% Quarterly Earnings Growth Y-o-Y.
Their balance sheet will require a more thorough examination before investing, with $1.36B of Total Cash (mrq) & $3.42B of Total Debt (mrq).
ADP stock pays a 1.95% dividend, which may not be sustainable in the long-run, as their payout ratio is 58.11%.
83.25% of ADP stock’s outstanding share float is owned by institutional investors.
Automatic Data Processing, Inc. ADP Stock As A Short-Term Trade Using Options
Traders with shorter time horizons can trade options to profit from ADP stock’s price movements, while protecting their portfolio from volatility.
I am looking at the contracts with the 3/17 expiration date.
The $220, $200 & $195 call options are all in-the-money, listed in order of highest to lowest level of open interest.
The $230, $240 & $250 puts are also all in-the-money, with the former being more liquid than the latter strike prices.
Tying It All Together
ADP stock has many interesting characteristics that traders & investors are sure to find appealing.
Investors will like their dividend yield, as well as their recent growth metrics, but may want to look deeper into their balance sheet’s structure.
Traders will like their recent technical performance, but may be disappointed by how liquid their options are.
Overall, it is worth taking a closer look into ADP stock to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OR OPTIONS CONTRACT POSITIONS IN ADP STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***